RBI has issued certain Directions to Independence Co-operative Bank Limited, Nashik, whereby, as from the close of business on February 10, 2021, the Chief Executive Officer of the UCB is restricted to carry several banking operations.
These include renewal of any loans and advances, making any investment, incurring any liability including borrowal of funds and acceptance of fresh deposits, etc. However, 99.89 per cent of the depositors are fully covered by the DICGC insurance scheme.
The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by RBI. The bank will continue to undertake banking business with restrictions till its financial position improves.
These Directions shall remain in force for a period of six months from the close of business on February 10, 2021 and are subject to review.
